b'CORPORATE GOVERNANCECorporate Governance HighlightsAtmos Energy has adopted a number of practices to promote strong corporate governance to ensure thelong-term sustainability of the Company.Board Practices Shareholder Matters Independent lead directorRobust shareholder engagement Separation of board chair and CEOAnnual say-on-pay voting 11 of 14 directors are independentMajority voting for director elections Annual election of all directorsNo poison pill defense Regular executive sessions of independent directors Comprehensive and strategic risk oversight Board Committees Annual board and committee evaluations Audit CommitteeOther Governance PracticesCorporate Responsibility, Sustainability,& Safety Committee Executive and director stock ownership guidelinesExecutive Committee Clawback policyHuman Resources Committee Prohibition on hedging or pledging stockNominating and Corporate Governance CommitteeBoard of DirectorsOur Boards leadership structure is designed to ensure independent28.6%oversight of corporate management and key issues related tostrategy and risk. Our lead director is independent. All standing Board committees are chaired by independent directors. Additionally, independent directors regularly hold executive sessions42.9%outside the presence of the executive chairman, the president and CEO, or any other company employee. Directors serve one-yearBOARD TENUREterms upon election and are reelected to subsequent one-year terms by a shareholder vote at the annual shareholders meeting. TheBoard has a mandatory retirement age of 75, with members serving21.4%through the annual meeting following their 75th birthday. 7.1%Board members are nominated annually based on their diversity of 5 years 1015 yearsskills, background, financial literacy, availability, independence, and59 years 15 yearsother relevant leadership qualities. We believe our Board has the right balance of tenure, with 50 percent of the Board members with 10-plus years of experience on the Board, providing consistency and historical perspective, and 43 percent with less than five yearsof experience bringing new ideas and a fresh perspective.30 ATMOS ENERGY CORPORATION'